Whether you are a new startup, or you have years of business experience, there are easy ways you can screw up your business if you are not careful. Below is a list of the top 10 ways you can cause yourself a lot of grief and potential liability compiled by a trusted Maryland Business Attorney.
#1 Not preparing a business plan.
If you run headfirst into the business world without a detailed business plan, you may be closing your business before it gets off the ground. A business plan provides you with a detailed guide for daily operations. A business plan also helps you define your market and objections. Even an established business needs a plan and needs to review and update the plan periodically.
#2 Ignoring the need for a mentor.
When you begin a business, it can be very helpful to have a mentor who understands the requirements and challenges of operating a business. Even if you have owned your business for some time, choosing a mentor within a different industry can help you improve your business.
#3 Failing to build and foster a network.
All business owners need a networking strategy for discovering and meeting new business prospects and maintaining currentbusiness contacts. Your network can provide new business opportunities and help with problems that may arise.
#4 Neglecting to obtain and listen to customer feedback.
Failing to conduct market research to determine whether you are providing goods and services your customers need and wantcan kill your business. Customer feedback may not always be pleasant to hear, but it can help you improve your services or goods to grow your business.
#5 Overestimating revenue or underestimating costs.
You need to be realistic when operating a business. It is always a good idea to be conservative when estimating your revenue potential and to budget for more money than you think you may need for operating costs.
#6 Failing to hire professionals when needed.
You may be capable of operating your business and handling all matters related to your business. However, you may need the services of a professional, such as a Maryland business attorney, accountant, or another business expert. Seek advice from experienced professionals when needed.
#7 Choosing the DIY approach.
Sometimes, you can save money by doing something yourself. However, as with seeking professional legal and financial guidance, you may cost your business additionalmoney if you try a DIY approach to something you do not understand, such as web design or remodeling.
#8 Failing to maintain records.
Putting your receipts and records in a box or only performing bookkeeping tasks once in a while is a sureway to get into financial trouble.
#9 Failing to implement employment contracts.
You may be a small business, but you need to define your employer-employee relationship to avoid future misunderstandings and potential liability. A simple employment contract is not difficult to draft. A Maryland business attorney can help you draft a contract that protects you and your business.
#10 Charging too little for your services or goods.
You offer quality services and goods to your customers. Do not underestimate the value of these goods and services. Market research can help you avoid charging too little.
Contact a Maryland Business Attorney for More Information
Do you want to avoid business mistakes that can screw up your business? Schedule a consult with Maryland business attorney Stephen Thienel today to discuss other ways you can protect yourself and your business. Mr. Thienel has decades of experience assisting clients with their business and tax planning needs throughout, Maryland, Virginia, and the District of Columbia.